The Pensions (Northern Ireland) Order 2005

Power to increase pensions giving effect to pension credits etc. N.I.

257.—(1) Article 37 of the 1999 Order (power of the Department to increase pensions provided to give effect to certain rights) is amended as follows.

(2) In paragraph (1), for “5 per cent.” substitute “ the maximum percentage ”.

(3) In paragraph (2), for “This” substitute “ Subject to paragraph (2A), this ”.

(4) After paragraph (2) insert—

“(2A) Paragraph (2) does not apply to pensions which—

(a) are money purchase benefits, and

(b) become pensions in payment on or after the commencement day.

(2B) For the purposes of paragraph (1) the “maximum percentage” means—

(a) 5 per cent. in a case where—

(i) the pension is in payment before the commencement day, or

(ii) the pension is not in payment before the commencement day but the entitlement to the relevant pension credit arose before that day, and

(b) 2.5 per cent. in a case where the entitlement to the relevant pension credit arises on or after the commencement day.” .

(5) In paragraph (3), at the appropriate places insert—

““commencement day” means the day appointed for the coming into operation of Article 257 of the Pensions (Northern Ireland) Order 2005 (amendments to Article 37);”

““money purchase benefit” has the meaning given by section 176(1) of the Pension Schemes Act;” ;

““relevant pension credit” means the pension credit to which the eligible pension credit rights or, as the case may be, the safeguarded rights are (directly or indirectly) attributable;” .